Structure Optimization Of China's Domestic Air Passenger Transport Market

Our country carries out strict control policy to the aviation transportation market, but the micro market structure is not ideal, it failed to form a relatively orderly competition situation, it is very worth pondering. And the domestic and foreign research has not analyzed the factors and causes for a country's domestic passenger transport market microstructure by using quantitative means. Therefore, it is very necessary to study the market structure of China's air passenger transport from the micro level.Based on the SCP theory, combined with new institutional economics and the second generation of regulation reform theory, combine market structure, market behavior, market performance, and government regulatory factors, route flights market supervision mechanism and system evaluation model is constructed.Select the passenger volume ranked the top 20 sectors as the analysis object. Calculate Bain market structure indicators and Herfindahl index. According to the analysis of major domestic airline market structure indicators, it is concluded that the general rules of the evolution of market structure.Analyze the correlation between influencing factors and market structure indicators, based on unit root data stationary test, analyze influence factors and market structure indicators by using Granger causality analysis.Corresponding policy recommendations are given to deal with the existing problems of China's domestic air passenger market.